Moody’s: Eliminate Debt Ceiling
Posted in Main Blog (All Posts) on July 20th, 2011 4:47 am by HL
Moody’s: Eliminate Debt Ceiling
The ratings agency Moody’s suggested Monday that the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders. “The United States is one of the few countries where Congress sets a ceiling on government debt, which creates ‘periodic uncertainty’ over the government’s ability to meet its obligations,” Moody’s said in a report. “We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty.”